The crypto market kicked off 2025 with powerful momentum, driven largely by a landmark regulatory milestone—the U.S. Securities and Exchange Commission’s (SEC) approval of spot Bitcoin exchange-traded funds (ETFs). This historic decision not only boosted investor confidence but also triggered a ripple effect across multiple on-chain and market metrics. In this data-driven analysis, we’ll explore 12 key charts that reveal the full scope of January’s crypto market dynamics, from surging stablecoin volumes to record-breaking options activity.
📈 Bitcoin and Ethereum See Strong On-Chain Transaction Growth
January marked a turning point for on-chain activity, with both Bitcoin and Ethereum experiencing significant growth in adjusted on-chain transaction value. Following the approval of 11 spot Bitcoin ETFs, total adjusted transaction volume for both networks rose 8.8% to $357 billion.
- Bitcoin’s adjusted transaction volume grew by 10.6%, reflecting heightened institutional and retail interest.
- Ethereum’s volume increased by 6%, indicating sustained network usage despite lower volatility compared to Bitcoin.
This surge underscores how regulatory clarity can unlock liquidity and drive real economic activity on blockchain networks.
👉 Discover how institutional adoption is reshaping crypto markets today.
💸 Stablecoin Momentum Accelerates
Stablecoins continued their role as the backbone of crypto liquidity in January. The adjusted on-chain transaction volume for stablecoins climbed 22.2% to $742.6 billion, signaling increased capital movement within the ecosystem.
Meanwhile, total stablecoin supply expanded by 4.1% to $125.8 billion, led by Tether (USDT) maintaining its dominant position with a 77% market share—the fifth consecutive month of growth. USD Coin (USDC) also gained ground, rising to 18.6% market share, likely benefiting from its integration into regulated ETF structures.
These figures highlight growing trust in dollar-backed digital assets as primary conduits for trading, hedging, and yield generation.
⛏️ Miner Revenue Dips Amid Market Shifts
Despite broader market optimism, Bitcoin miner revenue declined by 13.6% to $1.35 billion in January. This drop can be attributed to several factors:
- Reduced fee income due to lower transaction congestion.
- Increased network efficiency and competition among mining pools.
- Anticipation of the upcoming 2025 halving event, which may have prompted strategic adjustments in mining operations.
Conversely, Ethereum staking revenue remained resilient, growing slightly by **1.4% to $1.87 million daily** (annualized: ~$682 million), reflecting steady validator participation and network security demand.
🔥 Ethereum Continues Deflationary Trend
Ethereum’s deflationary mechanism, introduced via EIP-1559, remained active throughout January. A total of 75,037 ETH (~$180 million)** was burned during the month, bringing the cumulative burn since August 2021 to approximately **3.97 million ETH (~$10.98 billion).
This persistent supply contraction reinforces Ethereum’s value proposition as a deflationary digital asset, especially as Layer 2 adoption increases gas usage and fee burning across rollups.
🎨 NFT Market Shows Signs of Recovery
The Ethereum-based NFT market saw a modest but encouraging rebound, with monthly trading volume rising 6.2% to $828.8 million. While still far from 2021–2022 peaks, this uptick suggests renewed interest from collectors and investors, possibly fueled by:
- Improved market infrastructure.
- New generative art projects gaining traction.
- Increased integration with social tokens and creator economies.
As on-chain identity and digital ownership gain mainstream attention, NFTs could play a pivotal role in next-gen web experiences.
💱 Centralized Exchange Spot Volume Rises
Compliance-focused centralized exchanges (CEXs) reported a 4.9% increase in spot trading volume, reaching $6.281 trillion in January. This growth aligns with heightened retail and institutional engagement following the ETF approvals.
Market share distribution among major platforms was as follows:
- Binance: 71% (slight decline from December)
- Coinbase: 12.1%
- Kraken: 4.9%
- LMAX Digital: 3.7%
Coinbase’s relative gain highlights its strategic advantage as a U.S.-listed company directly benefiting from ETF-related trading activity.
👉 See how top exchanges are adapting to evolving regulatory landscapes.
📊 GBTC’s Transformation Drives Unprecedented Volume
One of the most dramatic shifts came from Grayscale’s Bitcoin Trust (GBTC), which converted into a spot ETF during the month. As a result, its daily average trading volume surged 302.7% to $784 million, reflecting strong investor appetite for regulated exposure to Bitcoin.
This transformation not only unlocked pent-up demand but also validated the long-term potential of traditional financial vehicles embracing digital assets.
📉 Futures Open Interest Declines Slightly
Despite strong spot market performance, Bitcoin futures open interest fell by 5.9%, while Ethereum futures dipped 1.5%. This contraction may indicate:
- Traders taking profits after the January rally.
- A shift from leveraged speculation to long-term holding via ETFs.
- Reduced volatility expectations post-ETF approval.
However, futures trading volume told a different story—Bitcoin futures volume jumped 14.1% to $1.1 trillion, suggesting robust underlying demand even if positions were being closed or rolled over.
CME Group’s Bitcoin futures also gained traction:
- Open interest rose 3.1% to $5 billion
- Daily average volume spiked 29.2% to $3.44 billion
This institutional-grade activity signals growing acceptance of crypto derivatives in traditional finance.
📈 Options Market Hits All-Time Highs
The crypto options market reached new heights in January:
- Bitcoin options volume increased 5.2% to $39.9 billion, setting a new record.
- Ethereum options volume surged 17.3% to $17.9 billion, also an all-time high.
Notably:
- Bitcoin open interest declined by 6.4%, possibly due to expiry of short-dated contracts.
- Ethereum open interest rose 6.5%, showing stronger bullish sentiment in the altcoin derivatives space.
These trends suggest increasing sophistication among traders using options for hedging, yield enhancement, and directional bets.
Frequently Asked Questions (FAQ)
Q: What caused the surge in crypto market activity in January?
A: The primary catalyst was the U.S. SEC’s approval of multiple spot Bitcoin ETFs, which brought institutional legitimacy, increased liquidity, and boosted investor confidence across the board.
Q: Why did Bitcoin miner revenue decrease despite rising prices?
A: Miner revenue depends on both block rewards and transaction fees. Lower network congestion in January reduced fee income, outweighing price gains and leading to an overall decline in earnings.
Q: How do ETF approvals affect on-chain metrics?
A: While ETFs themselves operate off-chain, their approval drives capital inflows into crypto ecosystems, increasing trading activity, stablecoin transfers, and exchange volumes—all reflected in on-chain data.
Q: Is the rise in USDT’s market share a concern for stability?
A: USDT’s dominance reflects its widespread utility and liquidity, but it also underscores concentration risk. However, its consistent redemption history and transparency improvements have maintained trust.
Q: What does rising ETH burn mean for investors?
A: A higher burn rate reduces net ETH issuance, contributing to scarcity. Over time, this deflationary pressure can support price appreciation, especially during periods of high network usage.
Q: Are declining futures open interests bearish?
A: Not necessarily. A drop in open interest alongside rising prices often indicates a shift from speculative trading to long-term holding—a potentially bullish sign for market maturity.
👉 Stay ahead of the next market cycle with real-time data and insights.
Final Thoughts
January 2025 was a defining month for the crypto industry. The approval of spot Bitcoin ETFs acted as a catalyst, igniting growth across stablecoin volumes, exchange activity, derivatives markets, and on-chain fundamentals. While some indicators—like miner revenue—faced headwinds, the broader picture shows a maturing ecosystem increasingly integrated with traditional finance.
As regulatory frameworks evolve and institutional participation deepens, metrics like ETH burns, options volume, and CEX dominance will remain critical barometers of health and innovation.
For investors and builders alike, understanding these trends isn’t just about tracking numbers—it’s about recognizing the structural shifts shaping the future of money and decentralized systems.
Core Keywords: spot Bitcoin ETF, on-chain metrics, stablecoin volume, Ethereum staking, crypto derivatives, NFT trading volume, GBTC conversion